All three members of the PUC, the agency charged with regulating electric and gas utilities in Nevada, voted in favor of changing the formula used to calculate the price paid by utilities for power purchased from residential solar systems.

Net-energy metering is a billing system that allows utility customers to “sell” excess electricity generated by onsite generating equipment to their electric utility.

In the past, the net-metering rules in Nevada required utilities to pay the “retail rate” for power generated by homeowners with rooftop solar panels. As a result of the PUC’s decision yesterday, residential solar systems will instead be paid the “wholesale rate” for electricity sold to utilities under the state’s net-metering rules.

What is the difference between the retail rate and the wholesale rate?